A booming Asian property market has propelled Savills towards record sales,
though new cooling measures by the Chinese government signal a tougher year
ahead.

The upmarket property consultancy posted a 36pc rise in pre-tax profit to £54.2m in 2012, as revenues hit an all-time high of £806.4m, driven by a record year in the Asia-Pacific region and a robust UK market.

Underlying profits at Savills' Asia Pacific business - its second largest outside the UK - swelled 18pc to £32.6m on the back of an 11pc jump in sales to £331m, more than offsetting losses in its sluggish US and continental European markets.

Asia-Pacific nations, in particular Hong Kong and mainland China, have become attractive destinations for speculative property investment, a trend which Savills has capitalised on.

However, Jeremy Helsby, Savills chief executive, warned new measures by the Chinese government designed to put the brakes on its overheated property market are likely to hit trade later this year.

"In Asia, whilst we anticipate that the most recent in a succession of control measures imposed in mainland China and Hong Kong will have an impact on transaction volumes towards the second half of the year, the medium and long term characteristics of these markets remain compelling," he said in the results statement.

Fearing a real estate bubble, the Chinese government began imposing a string of poljcy measures in 2011. Earlier this month it announced plans for a steep rise in capital gains tax for home sellers, while in Hong Kong, policymakers unveiled a doubling in stamp duty on the city's most expensive properties to deter speculative investment.

Such measures, targeted at home sales, drove buyers towards commercial property in Hong Kong and Greater China in the second half of 2012, comfortably offsetting a slowdown in the residential business.

Savills also said it had benefited from strong appetite for office property in London, which has been a target in recent years for investors seeking safe havens from global economic turmoil. Profits in the UK grew 11pc.

In continental Europe where it posted losses, the company said concerns over the potential break-up of the eurozone and the weak economy depressed capital markets, leading to a weaker performance in Sweden, Italy and Germany.

Savills board has proposed a final dividend of 6.7 pence per share, and special dividend of 6p per share, bringing the total per share payout for the year to 16 pence, up 19pc on 2011.